Here’s Why You Should Consider Buying Aspen Technology (AZPN) Shares

Baron Funds, an asset management firm, published its “Baron Asset Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Asset Fund (the “Fund”) fell 14.52% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) fell 12.58%. The S&P 500 Index, which comprises both growths and value-oriented large-cap stocks, fell 4.60%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Asset Fund mentioned Aspen Technology, Inc. (NASDAQ:AZPN) and explained its insights for the company. Founded in 1981, Aspen Technology, Inc. (NASDAQ:AZPN) is a Bedford, Massachusetts-based software company with an $11.0 billion market capitalization. Aspen Technology, Inc. (NASDAQ:AZPN)  delivered an 8.90% return since the beginning of the year, while its 12-month returns are up by 13.52%. The stock closed at $165.75 per share on May 13, 2022.

Here is what Baron Asset Fund has to say about Aspen Technology, Inc. (NASDAQ:AZPN) in its Q1 2022 investor letter:

“Shares of Aspen Technology, Inc. (NASDAQ:AZPN), a leader in process automation software, gained after the company reported a 6% acceleration in organic growth. We expect Aspen to close its transformative deal with industrial equipment manufacturer Emerson this quarter. We believe Aspen management will improve the growth, profitability, and cash flow of the acquired Emerson businesses by converting them to recurring revenue models, while leveraging Emerson’s vast sales force to improve the entire company’s growth rate. We also expect the company to become more aggressive with accretive acquisitions, and we believe the healthy environment for energy and other commodities should provide a supportive backdrop for sales growth.”

Our calculations show that Aspen Technology, Inc. (NASDAQ:AZPN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Aspen Technology, Inc. (NASDAQ:AZPN) was in 22 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 20 funds in the previous quarter. Aspen Technology, Inc. (NASDAQ:AZPN) delivered a 18.43% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Aspen Technology, Inc. (NASDAQ:AZPN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.